Creighton University

Accounting Procedures

PROCEDURE TITLE:

Internal Service Department Charges

PROCEDURE NUMBER:

GAPR 07

RELATED POLICY STATEMENT(S):

None

DATE ISSUED: 

July 1, 1993

DATE REVISED:

January 1, 1995

OVERVIEW

Several internal service departments exist throughout the University and function as "businesses," providing goods and services to other departments on campus. Activities for these departments are typically accounted for through the 7400 account codes. At the end of each month, these internal service departments typically "bill" the departments they have served through an automated journal voucher that is electronically submitted to the financial system.

When a department begins using the services of one of these department, they initially provide the correct accounting distributions to be charged for any "purchases." The periodic billings are initiated by the internal services departments. The Controller's Office is not involved in the process unless the automated interface cannot physically be processed through the financial system.

Questions regarding internal service department charges should be directed to the originating department, not the Controller's office, because those departments generate all of the entries and retain all back up documentation for charges made to individual departments.

See GAPR 06 for a discussion regarding the procedures for miscellaneous transactions between departments.